Financial news

The Malta Stock Exchange received a boost yesterday, as positive BOV interim results released late last week pushed the index up over 51 points, or 1.5 per cent, to close at 3556.984.

Late in the day on Friday, Bank of Valletta plc, reported its interim results for the six month period ended 31 March 2010. The Bank reported a pre-tax profit of €47.5 million which compared very favourably with the €6.3 million registered over the comparative period last year. A net interim dividend of €0.049 has been declared by the Board of Directors to all shareholders appearing on the Bank's Register as at the close of business on May 12. Investors viewed the results favourably and, accordingly, snapped up 31,070 shares across 30 deals, to lift the shares 13c5, or 4.0 per cent, to close at €3.50.

HSBC Bank Malta plc, meanwhile, also gained on the day, as its share price gained 1c2, or 0.4 per cent, in eight trades, of 6,028 shares.

Simonds Farsons Cisk plc, also had a stellar day, as its shares gained 4.1 per cent, or 7c, to close at €1.80 in light volume of 4 trades of 5,988 shares. There was no news to account for the rise.

The remaining issuer to see its share price gain on the day was International Hotel Investments plc, which was up, 2c8, or 3.5 per in a single trade of 20,000 shares.

The week ahead - Economic indicators for week starting May 3

In the United States, after the release of the Institute Supply Manager's (ISM) Index for the manufacturing industry yesterday, the ISM services index is expected to continue to improve. In the labour market, non-farm payrolls should continue to be lifted by census hiring but the unemployment rate is likely to remain at 9.7 per cent.

In the housing sector, pending home sales should expand further as buyers move to take advantage homebuyers tax credit. Other data releases in the coming week include factory orders figures and a consumer confidence indicator due to be released today.

In the eurozone, the focus next week will be on the European Central Bank's (ECB) policy meeting on Thursday, at which the bank is widely expected to keep interest rates unchanged at one per cent. The topic of Greece is expected to again take pride of place at the ECB press conference.

Meanwhile, March's retail sales are likely to be negative for the third month in a row as consumers remain cautious about spending. After the release of the Purchasing Managers Index (PMI) for the manufacturing industry yesterday, the figures for the services sector and those of the composite index will be released later on during the coming week.

In the United Kingdom, aside from the general election on Thursday, where a hung Parliament is a possibility, the data calendar is light in what will be a holiday-shortened week. The main release will be the Purchasing Managers' Index (PMI) data for April, which is likely to show a further improvement in the outlook for the manufacturing, services and construction sectors as the economy emerges from recession.

March's data on net secured lending and consumer credit are expected to show only modest gains in line with those posted in February. April's Purchasing Price Index (PPI) release is likely to show continued upward pressure due to higher commodity prices. Finally, Thursday's Bank of England meeting is expected to leave the key interest rate unchanged.

This article has been prepared by Bank of Valletta plc (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.